One of the most significant elements of obtaining a profitable rental home is accepting rent payments on time. But on the flip side, to make those payments, property owners first necessitate deciding how that rent should be paid. There are several different means to collect rent payments. Though the appropriate ones are those that fit your style of property management and your tenant’s wants and needs. To make up your mind a lot easier, here’s what you need to perceive and understand to pick the suitable rent collection method for you.
Variables to Consider
Knowing the best rent collection method for you depends on a number of different factors. As an illustration, look into how many tenants you will need to collect from each month, how far away you are from your rental property, and how comfortable you are with incorporating technology tools to support you to manage rent payments. Each of these attributes can actually help you narrow your options down greatly. You may likewise entail taking into consideration how often and in what way you want to interact with your tenants. While frequent positive communication is very beneficial for Cumming property managers, showing up each month only to collect the rent could send your tenant the wrong message.
Convenient and Well-Documented
Another significant thing to look into just before settling on a rent collection method is whether it serves two key criteria: convenience and the ability to document each transaction. Now more than ever, today’s renters are looking for tech-driven conveniences to make their lives trouble-free. A recent study sites that 83% of consumers prefer to pay their bills online. Nevertheless, including convenience, it’s furthermore relevant to keep good records of all rent payments and other transactions. Discovering a payment method that can offer both is necessary for a well-managed rental property.
Payment Methods
There are two major types of payment methods: traditional and electronic. Traditional payment methods reflect property management systems of the past and are just what you’d expect: cash, personal check, cashier’s check, or money order. Though there are good reasons to request a money order or cashier’s check – in payment of a security deposit, for example – receiving cash or personal checks isn’t right for most situations. Cash payments are stressful to document, and personal checks come with plenty of troubles, from slow delivery to long wait times as checks clear the bank.
On the other hand, electronic payment methods have become more varied over the last few years. Property owners can choose from electronic payment options like ACH transfers and Square, but now money can easily be sent through payment apps like PayPal, Zelle, and Venmo (to name a few).
Some electronic payment methods will furnish a record of each transaction, making documentation automatic. However, some tenants may be uneasy regarding the safety of sending money online or prefer not to use payments apps for monthly bills. The largest downside for property owners is the fees; all electronic payment methods most commonly will have added costs, so it’s significant to research each one prior to making your ultimate decision.
Automate and Communicate
With an awful lot of payment methods, it is relevant to decide on how you’d like to handle rent collection before it tends to be a challenge. The more automated the rent payment method you choose, the easier the entire process may be for you. But in fact, tenants may feel restricted if you accept only one payment method, especially if it relies on a technology they aren’t comfortable using. For this reason, it’s necessary to communicate with your tenant and take into consideration giving two or maybe three ways to pay the rent. This combination approach may be the best compromise, as long as each method furnishes the convenience and documentation you need.
Collecting rent payments doesn’t have to be toilsome, although it can be a real challenge to discover everything all by yourself. On the contrary, look into the payoffs of contracting a property management company that offers convenient online rent payment options. If you’re ready to turn the day-to-day tasks of managing a rental property over to the professionals, give us a call at 404-341-2102.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
